for personal use only - asx · name: dr kai fatt (joe) w ong title: non-executive chairman,...

VIP Gloves LtdABN 83 057 884 876

Annual Report - 30 June 2019

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VIP Gloves LtdCorporate directory30 June 2019

Directors Dr Kai Fatt (Joe) Wong - Non-executive ChairmanChin Kar Yang – Non-Executive Director Michael Higginson – Non-Executive Director Wee Min Chen – Executive DirectorHow Weng Chang – Non-Executive Director Chee Cheong Low – Non-Executive Director Peter Wee Ming Ng – Non-Executive Director

Company secretary Andrew Metcalfe

Registered office C/- Accosec & AssociatesSuite 3, Level 2470 Collins Street Melbourne VIC 3000 Australia

Principal place of business No. 17 Jalan Perusahaan 1,Kawasan Perusahaan, Beranang43700 Beranang, Selangor Darul Ehsan Malaysia

Share register Boardroom LimitedLevel 7, 207 Kent StreetSydney NSW 2000Investor phone number: (Australia) 1300 737 760 Investor phone number: (Overseas) +61 (0) 2 9290 9600

Auditor RSM Australia PartnersLevel 21, 55 Collins StreetMelbourne VIC 3000

Bankers Westpac Banking Corporation LtdMelbourne, AustraliaHong Leong BankKuala Lumpur, Malaysia

Stock exchange listing VIP Gloves Ltd shares are listed on the Australian Securities Exchange (ASX code:VIP)

Corporate Governance Statement www.vipglove.com.my

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VIP Gloves LtdDirectors' report30 June 2019

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of VIP Gloves Ltd (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2019.

DirectorsThe following persons were Directors of VIP Gloves Ltd during the whole of the financial year and up to the date of this report, unless otherwise stated:

Dr Kai Fatt (Joe) Wong - Non-executive Chairman, Independent (re-appointed 15 October 2018)Wee Min Chen – Executive Director (re-appointed 24 August 2018)Chin Kar Yang – Non-Executive DirectorMichael Higginson – Non-Executive Director, IndependentHow Weng Chang - Non-executive Director (appointed 8 August 2019)Chee Cheong Low – Non-executive Director, Independent (appointed 8 October 2019)Peter Wee Ming Ng – Non-executive Director, Independent (appointed 24 October 2019)Kah Ling Chang - Executive Chairman (resigned 22 October 2018)Wayne Johnson – Non-Executive Director, Independent (resigned 30 September 2019)

Principal activitiesThe principal activity of the Company during the financial year was the manufacture of nitrile gloves and the operation of a conveyor chain parts manufacturing business in Malaysia under its wholly owned Malaysian subsidiaries, VIP Glove Sdn Bhd (“VIP Glove”) and KLE Products Sdn Bhd (“KLE Products”).

DividendsThere were no dividends paid, recommended or declared during the current or previous financial year.

Review of operationsThe loss for the consolidated entity after providing for income tax amounted to $4,797,309 (30 June 2018: $2,323,847).

The loss includes an impairment of inventory amounting to $2,115,570 (2018: Nil), a write-down of the value of plant & equipment amounting to $336,366 (2018: Nil) both associated with the Company’s conveyer chain parts manufacturing operations undertaken by KLE Products; and impairment of receivables amounting to $302,183 (2018: $1,042,101).

The Company has expanded its sales network of nitrile gloves to new markets and has invested working capital on new glove production lines to increase its production capabilities at its manufacturing facilities in Malaysia.

The Company sought new capital for the expansion of its production facilities, with the addition of two new lines that are due for commissioning in December 2019.

Funding has been received progressively from Leading & Junction Sdn Bhd and Endless Earnings Sdn Bhd amounting to a total of $5,122,142 under subscription agreements to commit $8M and $2M respectively to the Company.

Endless Earnings Sdn Bhd has committed to complete the balance of their Subscription Agreement, amounting to $590,613, with such shares to be issued subject to receiving shareholder approval.

Following the resignation of Ms Kah Ling Chang from the Board, Dr Kai Fatt (Joe) Wong who re-joined the Board in October 2018, was appointed Chair. In addition, the founder of KLE Products, Mr Wee Min Chen also re-joined the Board as non- executive director in August 2018. Mr How Weng (Sebastian) Chang, Mr Chee Cheong (David) Low and Mr Peter Wee Ming Ng all joined the Board subsequent to year end. Mr Wayne Johnson resigned from the Board on 30 September 2019.

Significant changes in the state of affairsThere were no significant changes in the state of affairs of the consolidated entity during the financial year.

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Matters subsequent to the end of the financial yearThe consolidated entity has entered into an agreement with Silver Max Asia Pacific (Labuan) Limited to issue share capital to the value of $2,000,000. This is subject to approval at the AGM in November 2019. $750,000 has already been received under this agreement.

The Directors agreed to cease the Company’s loss-making conveyer chain parts manufacturing operations undertaken by its subsidiary KLE Products.

These actions reduce losses and raise capital to complete the construction and commissioning of additional nitrile glove manufacturing lines and provide working capital to the Company.

No other matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Likely developments and expected results of operationsAn increase in revenue from nitrile glove production is expected to continue into FY20 as the Company improves efficiencies from the current nitrile glove manufacturing operations with the commissioning of the additional nitrile glove manufacturing lines.

Environmental regulationThe Company's operations are not subject to any significant environmental regulations under the law of the Commonwealth and State in Australia and Malaysia.

To the extent that any environmental regulations may have an incidental impact on the Company's operations, the Directors of the Company are not aware of any breach by the Company of those regulations.

Information on DirectorsName: Dr Kai Fatt (Joe) WongTitle: Non-executive Chairman, Independent (re-appointed 15 October 2018)Experience and expertise: Dr Wong has a Computer Science B.Sc. Degree and a Doctorate in Pharmacy and

Healthcare Administration from the University of Louisiana, USA. After a stint with alarge multinational pharmaceutical company, he joined a local stock broking house as an analyst before his appointment as Research Head and Dealing Manager in 1995. In 1997, he joined South Johore Securities SB as Business Development Senior Managerand later Affin - United Overseas Bank Securities in April 1998 as its Senior Vice President. KF assumed the role of Director at eAssetManagement on July 2002.

Other current directorships: NoneFormer directorships (last 3 years): NoneInterests in shares: 80,000

Name: Chin Kar YangTitle: Non-Executive DirectorExperience and expertise: Mr Yang has extensive manufacturing and property management experience in

Malaysia. He is Managing Director of VIP Glove and KLE Products.Other current directorships: NoneFormer directorships (last 3 years): NoneSpecial responsibilities: NoneInterests in shares: NilInterests in options: NilContractual rights to shares: None

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Name: Wayne Johnson (resigned 30 September 2019)Title: Non-Executive Director, IndependentExperience and expertise: Mr Johnson is experienced in corporate advisory. Mr Johnson has over 30 years

business and financial transaction experience in Australia, New Zealand, Asia and North America. He has extensive experience in software and technology, Australian licensed financial services, corporate advisory, corporate governance and compliance as a result of building, managing and directing public and private companies from start up to established public corporations.

Other current directorships: Cape Range Limited (ASX: CAG) and Republic Capital Management Limited.Former directorships (last 3 years): NoneSpecial responsibilities: NoneInterests in shares: NilInterests in options: NilContractual rights to shares: None

Name: Michael HigginsonTitle: Non-Executive Director, IndependentQualifications: Bachelor of Business, Edith Cowan UniversityExperience and expertise: Mr Higginson is a professional director and company secretary with extensive

experience in public company administration, ASX Listing Rules, the Corporations Act, capital raisings, corporate governance, financial reporting and due diligence.

Other current directorships: Cape Range Limited (ASX: CAG) and SportsHero Limited (ASX: SHO)Former directorships (last 3 years): Dampier Gold Limited (ASX: DAU)Special responsibilities: NoneInterests in shares: NilInterests in options: NilContractual rights to shares: None

Name: Wee Min ChenTitle: Executive Director (re-appointed 24 August 2018)Experience and expertise: Mr Chen is founder of KLE Products Sdn Bhd and has extensive manufacturing

experience in Malaysia. He is a Director of VIP Glove and KLE Products.Other current directorships: NoneFormer directorships (last 3 years): NoneSpecial responsibilities: NoneInterests in shares: 55,550,948Interests in options: NilInterests in rights: NilContractual rights to shares: None

Name: How Weng ChangTitle: Non-executive Director, non-independent (appointed 8 August 2019)Qualifications: Bachelor of Business Administration (cum laude) majoring in Finance & Banking.Experience and expertise: Mr Chang has over 25 years’ experience in the regional investment environment in

Malaysia, in the areas of stockbroking, corporate finance, fund management and venture capital investments.Mr Chang is CEO of Corporate Advisory & Re-Engineering Services Sdn Bhd, a boutique financial consulting company providing services to clients in the Asian region in the areas of public flotation, mergers and acquisitions, and corporate restructuring.

Mr Chang has been educated in Malaysia and USAOther current directorships: NoneFormer directorships (last 3 years): NoneInterests in shares: NilInterests in options: Nil

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Name: Chee Cheong LowTitle: Non-executive Director, independent (appointed 8 October 2019)Experience and expertise: Mr Low has 20 years of investment banking and corporate advisory experience in Asia

and Australia having advised on various mergers and acquisitions, initial public offerings, fund raising (both debt and equity) and during the Asian Financial Crisis, corporate and debt restructuring.He is the founder and director of JCL Capital Pty Ltd, a boutique investment advisory house which is focuses on cross border mergers & acquisitions and fund raising linking between Asia and Australia.

Other current directorships: Chairman of Ennox Group Limited (ASX: EXO) and Executive Director of Syngas Ltd(ASX: SYN)

Former directorships (last 3 years): Non-executive director of Black Star Petroleum Limited (ASX: BSP).Interests in shares: NilInterests in options: Nil

Name: Peter Wee Ming NgTitle: Non-executive Director, independent (appointed 24 October 2019)Experience and expertise: Mr Ng is an Australian Legal Practitioner and graduate of Monash University, currently

practicing law as the principal director of a boutique legal firm in Melbourne, Australia. Prior to entering into legal practice, he was an Associate Director of a private equity investment house specialising in managing and raising the public profiles of small and emerging companies in the mining and renewable energy sector. He also has had experience in managing portfolio investment funds covering listed equities, fixed income securities and real estate investments.

Other current directorships: Non-Executive Director of Syngas Ltd (ASX: SYN)Former directorships (last 3 years): NilInterests in shares: NilInterests in options: Nil

'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.

'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.

Company secretaryAndrew Metcalfe (B.Bus, CPA, FGIA, GAICD) is a qualified accountant with over 26 years' experience across a variety of industry sectors, holding the position of Company Secretary, governance advisor and CFO for a number of ASX listed entities and unlisted public entities. Andrew is employed by Accosec & Associates and assists the Company in Company secretarial practice and procedures and governance issues. Mr. Metcalfe has held the role since May 2009.

Meetings of DirectorsThe number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2019, and the number of meetings attended by each Director were:

Nomination andFull Board Remuneration Committee Audit and Risk Committee

Attended Held Attended Held Attended Held

Dr Kai Fatt (Joe) Wong (re- appointed 15 October 2018) 2 2 - - - -Chin Kar Yang 4 5 - - - -Wayne Johnson 4 5 - - - -Michael Higginson 5 5 - - - -Wee Min Chen (re-appointed 24 August 2018)Kah Ling Chang (resigned 22 October 2018)

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Held: represents the number of meetings held during the time the Director held office.

Resolutions passed by Circular Resolution of the Board are not reported in the above table.

Retirement, election and continuation in office of directorsIn accordance with the Constitution, one third of the previously elected Directors will retire at the annual general meeting and all directors appointed since the date of the last annual general meeting, being eligible, offer themselves for re‑election.

Remuneration report (audited)The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in accordance with the requirements of the Corporations Act 2001 and its Regulations.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors.

The remuneration report is set out under the following main headings:● Principles used to determine the nature and amount of remuneration● Details of remuneration● Service agreements● Share-based compensation● Additional information● Additional disclosures relating to key management personnel

Principles used to determine the nature and amount of remunerationThe objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitiveand appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward governance practices:● competitiveness and reasonableness● acceptability to shareholders● performance linkage / alignment of executive compensation● transparency

Given the size and nature of the Company and the Board, the Board has elected not to establish a Remuneration Committee and instead discharges such responsibilities usually delegated to a Remuneration Committee itself. The Board has adopted a Remuneration Policy to provide guidance as to the principles to be considered in determining the nature and amount of remuneration payable to Directors, executives and senior management.

The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it should seek to enhance shareholders' interests by:● having economic profit as a core component of plan design● focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering

constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value ● attracting and retaining high calibre executives

Additionally, the reward framework should seek to enhance executives' interests by:● rewarding capability and experience● reflecting competitive reward for contribution to growth in shareholder wealth● providing a clear structure for earning rewards

In accordance with best practice corporate governance, the structure of non-executive director and executive director remuneration is separate.

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Non-executive directors remunerationNon‑executive Directors’ fees and payments are reviewed regularly by the Board in light of demands of the Directors fromtime to time and the financial condition of the Company.

Fees and payments to non-executive Directors reflect the demands and responsibilities of their role. Non-executive Directors do not receive share options or other incentives as part of fees paid for services provided.

ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general meeting. The most recent determination was at the Annual General Meeting held on 18 December 2015, where the shareholders approved a maximum annual aggregate remuneration of $250,000.

A Director may also be paid fees or other amounts as the Directors determines if a Director performs special duties or otherwise performs services outside the scope of the ordinary duties of a Director. No additional fees were paid to any Director during the financial period.

A Director may also be reimbursed for out of pocket expenses incurred as a result of their Directorship or any special duties.

Executive remunerationAs a policy, in determining executive remuneration, the Board would endeavour to ensure that remuneration practices are:● competitive and reasonable, enabling the Company to attract and retain key talent;● aligned to the Company’s strategic and business objectives and the creation of shareholder value;● transparent; and● acceptable to shareholders.

The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has both fixed and variable components.

As the Company develops its remuneration structure, the executive remuneration and reward framework has a single component that forms the executive's total remuneration:● base pay and non-monetary benefits and other remuneration such as superannuation.

Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the executive.

Consolidated entity performance and link to remunerationAs the Company has not yet developed a reward framework, remuneration for certain individuals is not directly linked to the performance of the consolidated entity at the date of this report.

The Board is of the opinion that the continued improved results can be attributed in part to the adoption of performance based compensation and is satisfied that this improvement will continue to increase shareholder wealth if maintained over the coming years.

Use of remuneration consultantsDuring the financial year ended 30 June 2019, no remuneration consultants were engaged.

Voting and comments made at the Company's [DATE] Annual General Meeting ('AGM')At the 30 November 2018 AGM, 92.55% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2018. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.

Details of remuneration

Amounts of remunerationDetails of the remuneration of key management personnel of the consolidated entity are set out in the following tables.

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VIP Gloves Ltd Directors' report 30 June 2019

Post-employment Long-term

Share-based

payments

Cash Other Non- Super- service Equity-salary fees monetary annuation leave settled Total

30 June 2019 $ $ $ $ $ $ $

Non-Executive Directors:Dr Kai Fatt Wong (1) 55,250 - - - - - 55,250Wayne Johnson 48,000 - - - - - 48,000Michael Higginson 36,000 25,162 - - - - 61,162Kah Ling Chang (2) 22,750 - - - - - 22,750

Executive Directors:Chin Kar Yang 127,028 - - 15,757 - - 142,785Wee Min Chen (3) 97,614 22,583 - 8,520 - - 128,717Kay Wen Chen (4) 41,494 - - 5,405 - - 46,899

Other Key ManagementPersonnel:Andrew Metcalfe (5) 87,662 - - - - - 87,662Lee Siew Ha (6) 12,195 - - - - - 12,195Terence Hiew (7) 29,905 - - - - - 29,905Ei Ling Chong 22,018 - - - - - 22,018Wilson Ow 13,550 - - - - - 13,550

593,466 47,745 - 29,682 - - 670,893

1 Represents remuneration from 15 October 2018 to 30 June 2019.

2 Represents remuneration from 1 July 2018 to 22 October 2018.

3 Represents remuneration from 24 August 2018 to 30 June 2019 except for the $22,583 which represents advisory fees from 1 July 2018 to 31 October 2018.

4 Represents remuneration from 1 March 2019 to 30 June 2019.

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5 Represents fees paid to Accosec & Associates in which Andrew Metcalfe has an interest and which he is a Director. Accosec & Associates provides the services of a Company Secretary to VIP Gloves Limited.

6 Represents remuneration from 1 July 2018 to 1 October 2018.

7 Represents remuneration from 1 July 2018 to 28 February 2019.

Post-employment Long-term

Share-based

payments

Cash salary Other Non- Super- service Equity-and fees fees monetary annuation leave settled Total

30 June 2018 $ $ $ $ $ $ $

Non-Executive Directors:Kah Ling Chang 28,000 - - - - - 28,000Wayne Johnson 32,000 - - - - - 32,000Michael Higginson 24,000 - - - - - 24,000Dr Kai Fatt Joe Wong 21,000 - - - - - 21,000Frank Licciardello 70,700 - - - - - 70,700Lee Mitchell 43,490 - - - - - 43,490

Executive Directors:Chin Kar Yang 122,827 - - 15,275 - - 138,102Wee Min Chen * 15,183 94,895 - - - - 110,078Ei Ling Chong 40,041 - - 4,349 - - 44,390

Other Key ManagementPersonnel:Andrew Metcalfe ** 87,889 - - - - - 87,889Alan Ng 21,058 - - 2,546 - - 23,604Lee Siew Ha 20,021 - - 2,754 - - 22,775Ai Ling Chong 9,884 - - 1,196 - - 11,080Kay Wen Chen 28,771 - - 1,775 - - 30,546Wei Kee Chong 26,360 - - - - - 26,360

591,224 94,895 - 27,895 - - 714,014

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The proportion of remuneration linked to performance and the fixed proportion are as follows:

Fixed remuneration At risk - STI At risk - LTIName 30 June 2019 30 June 2018 30 June 2019 30 June 2018 30 June 2019 30 June 2018

Non-Executive Directors:Dr Kai Fatt Joe Wong 100% 100% - - - -Wayne Johnson 100% 100% - - - -Michael Higginson 100% 100% - - - -Kah Ling Chang 100% 100% - - - -Frank Licciardello - 100% - - - -Lee Mitchell - 100% - - - -

Executive Directors:Chin Kar Yang 100% 100% - - - -Wee Min Chen 100% 100% - - - -Kay Wen Chen 100% 100% - - - -Ei Ling Chong - 100% - - - -

Other Key ManagementPersonnel:Andrew Metcalfe 100% 100% - - - -Alan Ng 100% 100% - - - -Lee Siew Ha 100% 100% - - - -Ai Ling Chong 100% 100% - - - -Wei Kee Chong 100% 100% - - - -

Service agreementsRemuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements are as follows:

Name: Chin Kar YangTitle: Managing Director – VIP Gloves Sdn Bhd and KLE Products Sdn BhdAgreement commenced: 17 November 2017Term of agreement: Not applicable - termination on 1 months’ noticeDetails: Base consultancy fee for the year ending 30 June 2019 of $150,000.

Name: Wee Min ChenTitle: Director – VIP Gloves Sdn Bhd and KLE Products Sdn BhdAgreement commenced: 29 January 2016Term of agreement: Not applicable – termination on 6 months’ noticeDetails: Base consultancy fee for the year ending 30 June 2019 of $190,000.

Name: Kay Wen ChenTitle: Director – VIP Gloves Sdn Bhd and KLE Products Sdn BhdAgreement commenced: 29 January 2016Term of agreement: Not applicable – termination on 3 months’ noticeDetails: Base consultancy fee for the year ending 30 June 2019 of $47,500

Name: Wilson OwTitle: Chief Financial OfficerAgreement commenced: 1 November 2018Term of agreement: Not applicable – termination on 1 month’s’ noticeDetails: Base salary for the year ending 30 June 2019 of $20,700

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Name: Andrew MetcalfeTitle: Company SecretaryAgreement commenced: 29 January 2016Term of agreement: Not applicableDetails: Base consultancy fee for the year ending 30 June 2019 of $65,600.

Name: Lee Siew HaTitle: Chief Financial OfficerAgreement commenced: 31 January 2018 and terminated 1 October 2018Term of agreement: Not applicableDetails: Base salary for the year ending 30 June 2018 of $22,775

Key management personnel have no entitlement to termination payments in the event of removal for misconduct.

Share-based compensation

Issue of sharesThere were no shares issued to Directors and other key management personnel as part of compensation during the year ended 30 June 2019.

OptionsThere were no options over ordinary shares issued to Directors and other key management personnel as part ofcompensation that were outstanding as at 30 June 2019.

There were no options over ordinary shares granted to or vested by Directors and other key management personnel as part of compensation during the year ended 30 June 2019.

Additional informationThe earnings of the consolidated entity for the five years to 30 June 2019 are summarised below:

2015 2016 2017 2018 2019$ $ $ $ $

Revenue and other income 245 7,964,580 9,032,903 11,391,412 11,691,611Profit/(Loss) before income tax (127,356) 266,031 (3,027,114) (1,608,587) (4,797,309)Profit/(Loss) after income tax (127,356) (50,226) (3,510,409) (2,323,847) (4,797,309)

The factors that are considered to affect total shareholders return ('TSR') are summarised below:

2015 2016 2017 2018 2019

Share price at financial year end ($) - 0.18 0.08 0.04 0.04Basic earnings per share (cents per share) - (0.08) (1.09) (0.63) (1.04)

In the period from 30 June 2012 until 1 February 2016, the Company’s shares were suspended from trading on the ASX.

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Additional disclosures relating to key management personnel

ShareholdingThe number of shares in the Company held during the financial year by each Director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below:

Balance at Received Balance atthe start of as part of Disposals/ the end of

the year remuneration Additions other the yearOrdinary sharesDr Kai Fatt Joe Wong - - 80,000 - 80,000Wee Min Chen 55,550,948 - - - 55,550,948Andrew Metcalfe 2,052,025 - - - 2,052,025Kay Wen Chen 120,000 - - - 120,000

57,722,973 - 80,000 - 57,802,973

No other director or key management personnel holds shares in the Company.

Option holdingThe number of options over ordinary shares in the Company held during the financial year by each Director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below:

Balance at Expired/ Balance atthe start of forfeited/ the end of

the year Granted Exercised other the yearOptions over ordinary sharesWee Min Chen 9,200,000 - - (9,200,000) -

9,200,000 - - (9,200,000) -

Keng Lek Engineering is a Director-related entity of Wee Min Chen and Kay Wen Chen. The entity received an advance in a previous year and there is an $111,713 receivable at 30 June 2019.

Wee Min Chen has received an Advisory fee of $22,582 for the 2019 financial year.

No other transactions with key management personnel and their related parties occurred during the year ended 30 June2019.

This concludes the remuneration report, which has been audited.

Shares under optionThere were no unissued ordinary shares of VIP Gloves Ltd under option outstanding at the date of this report.

Shares issued on the exercise of optionsThere were no ordinary shares of VIP Gloves Ltd issued on the exercise of options during the year ended 30 June 2019 and up to the date of this report.

Indemnity and insurance of officersThe Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith.

During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

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Auditor's independence declarationA copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set outimmediately after this Directors' report.

AuditorRSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.

This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the Directors

25 October 2019

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the audit of the financial report of VIP Gloves Limited for the year ended 30 June 2019, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(ii) any applicable code of professional conduct in relation to the audit.

RSM AUSTRALIA PARTNERS

J S CROALLPartner

Dated: 25 October 2019Melbourne, Victoria

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VIP Gloves LtdContents30 June 2019

Statement of profit or loss and other comprehensive income Statement of financial positionStatement of changes in equityStatement of cash flowsNotes to the financial statementsDirectors' declarationIndependent auditor's report to the members of VIP Gloves Ltd Shareholder information

General information

1617181920484952

The financial statements cover VIP Gloves Ltd as a consolidated entity consisting of VIP Gloves Ltd and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is VIP Gloves Ltd's functional and presentation currency.

VIP Gloves Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are:

Registered office Principal place of business

C/- Accosec & Associates No. 17 Jalan Perusahaan 1,Suite 3, Level 2 Kawasan Perusahaan, Beranang470 Collins Street 43700 Beranang, Selangor Darul EhsanMelbourne VIC 3000 MalaysiaAustralia

A description of the nature of the consolidated entity's operations and its principal activities are included in the Directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of Directors, on 25 October 2019. The Directors have the power to amend and reissue the financial statements.

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VIP Gloves LtdStatement of profit or loss and other comprehensive incomeFor the year ended 30 June 2019

ConsolidatedNote 30 June 2019 30 June 2018

$ $

RevenueRevenue 4 11,691,611 11,391,412Cost of goods sold (14,072,259) (10,769,874)

Gross (loss) / profit (2,380,648) 621,538

Other income 5 359,405 681,379Interest revenue 6,814 26,556

ExpensesEmployee benefits expense (652,284) (726,223)Depreciation and amortisation expense 6 (113,549) (104,764)Impairment of property, plant & equipment 6 (297,933) -Loss on disposal of assets (10,078) (18,464)Legal and professional fees (332,704) (471,714)Foreign exchange losses - (22,242)Provision for expected credit losses 6 (205,902) (1,042,101)Administration expenses (476,532) (552,552)Finance costs 6 (693,898) (715,260)Total expenses (2,782,880) (3,653,320)

Loss before income tax expense (4,797,309) (2,323,847)

Income tax expense 7 - -

Loss after income tax expense for the year (4,797,309) (2,323,847)

Other comprehensive income

Items that may be reclassified subsequently to profit or lossForeign currency translation (90,425) 2,517

Other comprehensive income for the year, net of tax (90,425) 2,517

Total comprehensive income for the year (4,887,734) (2,321,330)

Cents Cents

Basic loss per share 33 (1.04) (0.63)Diluted loss per share 33 (1.04) (0.63)

The above statement of profit or loss and other comprehensive income should be read in conjunction with theaccompanying notes

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VIP Gloves LtdStatement of financial positionAs at 30 June 2019


$ $

Assets

Current assetsCash and cash equivalents 8 54,443 367,327Trade and other receivables 9 886,782 1,032,454Inventories 10 880,351 3,713,354Financial assets 11 307,908 292,988Other 12 62,621 70,980Total current assets 2,192,105 5,477,103

Non-current assetsProperty, plant and equipment 13 15,036,630 14,649,153Total non-current assets 15,036,630 14,649,153

Total assets 17,228,735 20,126,256

Liabilities

Current liabilitiesTrade and other payables 14 5,373,821 8,562,681Financial liabilities 15 3,341,311 4,740,757Income tax 16 171,423 166,850Total current liabilities 8,886,555 13,470,288

Non-current liabilitiesFinancial liabilities 17 2,138,819 2,002,119Total non-current liabilities 2,138,819 2,002,119

Total liabilities 11,025,374 15,472,407

Net assets 6,203,361 4,653,849

EquityIssued capital 18 14,920,799 8,483,553Reserves 20 (465,472) (375,047)Accumulated losses (8,251,966) (3,454,657)

Total equity 6,203,361 4,653,849

The above statement of financial position should be read in conjunction with the accompanying notes17

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VIP Gloves LtdStatement of changes in equity For the year ended 30 June 2019

Issuedcapital

Foreign currency

translationreserve

Accumulatedlosses Total equity

Consolidated $ $ $ $

Balance at 1 July 2017 7,222,087 (377,564) (1,130,810) 5,713,713

Loss after income tax expense for the year - - (2,323,847) (2,323,847)Other comprehensive income for the year, net of tax - 2,517 - 2,517

Total comprehensive income for the year - 2,517 (2,323,847) (2,321,330)

Issue of shares 1,475,000 - - 1,475,000Capital raising costs (213,534) - - (213,534)

Balance at 30 June 2018 8,483,553 (375,047) (3,454,657) 4,653,849

Issuedcapital

Foreign currency

translationreserve

Accumulatedlosses Total equity


Balance at 1 July 2018 8,483,553 (375,047) (3,454,657) 4,653,849

Loss after income tax expense for the year - - (4,797,309) (4,797,309)Other comprehensive income for the year, net of tax - (90,425) - (90,425)

Total comprehensive income for the year - (90,425) (4,797,309) (4,887,734)

Issue of shares 6,037,472 - - 6,037,472Equity received in advance 812,278 - - 812,278Capital raising costs (412,504) - - (412,504)

Balance at 30 June 2019 14,920,799 (465,472) (8,251,966) 6,203,361

The above statement of changes in equity should be read in conjunction with the accompanying notes18

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VIP Gloves LtdStatement of cash flowsFor the year ended 30 June 2019


$ $

Cash flows from operating activitiesReceipts from customers 11,605,397 12,558,708Payments to suppliers (12,341,238) (12,136,635)

(735,841) 422,073Interest received 6,814 11,171Other revenue - 61,963Interest and other finance costs paid (693,898) (569,004)Income taxes paid - (190,113)

Net cash used in operating activities 32 (1,422,925) (263,910)

Cash flows from investing activitiesPayments for property, plant and equipment 13 (1,559,096) (3,671,141)Refund of security deposits 752 -Purchase of financial assets - (32,151)Proceeds from disposal of property, plant and equipment - 30,625

Net cash used in investing activities (1,558,344) (3,672,667)

Cash flows from financing activitiesProceeds from issue of shares 18 3,024,417 1,475,000Proceeds from shares yet to be issued 812,278 2,103,587Proceeds from issue of convertible notes - 995,226Proceeds from term loan - 2,084,075Share issue transaction costs 18 (412,504) (213,534)Proceeds from / (repayment) of trust receipts (137,211) (1,825,225)Repayment of banker' acceptances - (88,407)Repayment of term loan (232,706) (368,435)Repayment of hire purchase loans (59,296) (106,413)Repayment of convertible notes (489,862) -

Net cash from financing activities 2,505,116 4,055,874

Net increase/(decrease) in cash and cash equivalents (476,153) 119,297Cash and cash equivalents at the beginning of the financial year (691,871) (604,589)Effects of exchange rate changes on cash and cash equivalents (10,158) (206,579)

Cash and cash equivalents at the end of the financial year 8 (1,178,182) (691,871)

The above statement of cash flows should be read in conjunction with the accompanying notes19

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VIP Gloves LtdNotes to the financial statements30 June 2019

Note 1. Significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

New or amended Accounting Standards and Interpretations adoptedThe consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The following Accounting Standards and Interpretations are most relevant to the consolidated entity:

The consolidated entity has adopted AASB 9 from 1 January 2018. The standard introduced new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows which arise on specified dates and that are solely principal and interest. A debt investment shall be measured at fair value through other comprehensive income if it is held within a business model whose objective is to both hold assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of its fair value. All other financial assets are classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading or contingent consideration recognised in a business combination) in other comprehensive income ('OCI'). Despite these requirements, a financial asset may be irrevocably designated as measured at fair value through profit or loss to reduce the effect of, or eliminate, an accounting mismatch. For financial liabilities designated at fair value through profit or loss, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment is measured using a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. For receivables, a simplified approach to measuring expected credit losses using a lifetime expected loss allowance is available.

The consolidated entity has adopted AASB 15 from 1 January 2018. The standard provides a single comprehensive model for revenue recognition. The core principle of the standard is that an entity shall recognise revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a new contract-based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. This is described further in the accounting policies below. Credit risk is presented separately as an expense rather than adjusted against revenue. Contracts with customers are presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the customer's payment. Customer acquisition costs and costs to fulfil a contract can, subject to certain criteria, be capitalised as an asset and amortised over the contract period.

AASB 9 and AASB 15 were adopted using the modified retrospective approach and as such comparatives have not been restated. There has been no material impact on opening accumulated losses as a result of adopting these standards.

Going concernThe financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.

As disclosed in the financial statements, the consolidated entity incurred a loss of $4,797,309 and had net cash outflows from operating activities of $1,422,925 for the year ended 30 June 2019. As at that date, the consolidated entity had net current liabilities of $6,694,450.

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Note 1. Significant accounting policies (continued)

These factors indicate a material uncertainty which may cast significant doubt as to whether the consolidated entity will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

The Directors believe there are reasonable grounds to believe the consolidated entity will be able to continue as a going concern, after consideration of the following factors:

● The consolidated entity has entered into an agreement with Silver Max Asia Pacific (Labuan) Limited to issue share capital to the value of $2,000,000. This is subject to approval at the AGM in November 2019. $750,000 has alreadybeen received under this agreement post 30 June 2019;

● The consolidated entity has an agreement with Endless Earnings Sdn Bhd to issue share capital to the value of$2,000,000. $1,324,387 has already been received under this agreement as at 30 June 2019. A further $85,000 was received subsequent to 30 June 2019. Shares to be issued against remaining amounts under this agreement is subject to approval at the AGM in November 2019;

● A proposed further capital raising of $3,000,000 from Silver Max to fund the glove manufacturing operations in Malaysia;and

● Management is also exploring options for entering in to a sale and leaseback arrangement for the land and buildingsheld by the consolidated entity should the $3,000,000 capital raising not proceed.

Accordingly, the Directors believe that the consolidated entity will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report.

The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the consolidated entity does not continue as a going concern.

Basis of preparationThese general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB').

Historical cost conventionThe financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

Critical accounting estimatesThe preparation of the financial statements requires the use of certain critical accounting estimates. It also requiresmanagement to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Parent entity informationIn accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 29.

Principles of consolidationThe consolidated financial statements incorporate the assets and liabilities of all subsidiaries of VIP Gloves Ltd ('Company'or 'parent entity') as at 30 June 2019 and the results of all subsidiaries for the year then ended. VIP Gloves Ltd and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

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Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity areeliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Operating segmentsOperating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance.

Foreign currency translationThe financial statements are presented in Australian dollars, which is VIP Glove Limited’s functional and presentation currency. The functional currency of KLE is Malaysian Ringgit.

Foreign currency transactionsForeign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of thetransactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translationat financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign operationsThe assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.

The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.

Revenue recognitionThe consolidated entity recognises revenue as follows:

Revenue from contracts with customersRevenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.

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Sale of goodsRevenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which is generally at the time of delivery. Amounts disclosed as revenue are net of sales returns and trade discounts.

InterestInterest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenueOther revenue is recognised when it is received or when the right to receive payment is established.

Income taxThe income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicableincome tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a

transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or

● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and thetiming of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilit ies are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

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Cash and cash equivalentsCash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position.

Trade and other receivablesTrade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. An allowance is raised when there is objective evidence that the consolidated entity will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments (more than 180 days overdue) are considered indicators that the trade receivable may be impaired.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

InventoriesRaw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a 'first in firstout' basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable.

Stock on hand is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Property, plant and equipmentPlant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:

Leasehold Buildings and improvements 50 years

Plant and equipment 10 yearsPlant and equipment under lease 10 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

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Impairment of non-financial assetsGoodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non- financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is thepresent value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset orcash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together toform a cash-generating unit.

Trade and other payablesThese amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

BorrowingsLoans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Finance costsFinance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred.

Fair value measurementWhen an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fairvalue is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Business combinationsThe acquisition method of accounting is used to account for business combinations regardless of whether equity instrumentsor other assets are acquired.

The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.

On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in existence at the acquisition-date.

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Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss.

Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequentchanges in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.

The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurementof the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer.

Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine fair value.

Earnings per share

Basic earnings per shareBasic earnings per share is calculated by dividing the profit attributable to the owners of VIP Gloves Ltd, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.

Diluted earnings per shareDiluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

Goods and Services Tax ('GST') and other similar taxesRevenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

New Accounting Standards and Interpretations not yet mandatory or early adoptedAny new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The following Accounting Standards and Interpretations are most relevant to the consolidated entity:

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AASB 16 LeasesThis standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position, measured at the present value of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby either a 'right-of-use' asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results will be improved as the operating expense is replaced by interest expense and depreciation in profit or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. The consolidated entity will adopt this standard from 1 July 2019 but does not expect the impact to be material as the consolidated entity has no operating leases at 30 June 2019.

Note 2. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Allowance for expected credit lossesThe allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on thelifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.

Provision for impairment of inventoriesThe provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of theprovision is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that affect inventory obsolescence.

Estimation of useful lives of assetsThe consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Impairment of non-financial assets other than goodwill and other indefinite life intangible assetsThe consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangibleassets at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.

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Note 2. Critical accounting judgements, estimates and assumptions (continued)

Impairment of property, plant and equipmentThe consolidated entity assesses impairment of property, plant and equipment at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.

Income taxThe consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for anticipated tax audit issues based on the consolidated entity's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.

Note 3. Operating segments

The Directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are reviewed by the Chief Operating Decision Maker (CODM) (the Board) in allocating resources and have concluded that at this time there are no separately identifiable segments.

During the period, the Company’s considers that it has only operated in one segment, being a manufacturing and engineering business in Malaysia. However, the consolidated entity has operated across two geographical locations, Malaysia and Australia. The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements. The information reported to the CODM is on a monthly basis.

The Company is domiciled in Australia. Revenue from external customers is generated in Malaysia. Assets are located in Malaysia and Australia.

elimination /Malaysia Australia unallocated Total

Consolidated - 30 June 2019 $ $ $ $

RevenueSales to external customers 11,728,642 - - 11,728,642Interest revenue 6,757 58 - 6,815Total revenue 11,735,399 58 - 11,735,457

EBITDA (3,057,407) (5,977,477) 5,492,115 (3,542,769)Depreciation and amortisation (567,457) - - (567,457)Interest revenue 6,757 58 - 6,815Finance costs (543,041) (150,857) - (693,898)Profit/(loss) before income tax expense (4,161,148) (6,128,276) 5,492,115 (4,797,309)Income tax expense -Loss after income tax expense (4,797,309)

AssetsSegment assets 17,233,943 7,293,833 (7,299,041) 17,228,735Total assets 17,228,735

LiabilitiesSegment liabilities 21,993,694 999,750 (11,968,070) 11,025,374Total liabilities 11,025,374

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Note 3. Operating segments (continued)

elimination /Malaysia Australia unallocated Total

Consolidated - 30 June 2018 $ $ $ $

RevenueSales to external customers 11,391,412 - - 11,391,412Other revenue 26,226 330 - 26,556Total revenue 11,417,638 330 - 11,417,968

EBITDA (869,848) (660,531) - (1,530,379)Depreciation and amortisation (104,764) - - (104,764)Interest revenue 26,226 330 - 26,556Finance costs (523,292) (191,968) - (715,260)Loss before income tax expense (1,471,678) (852,169) - (2,323,847)Income tax expense -Loss after income tax expense (2,323,847)

AssetsSegment assets 19,981,191 7,948,649 (7,803,584) 20,126,256Total assets 20,126,256

LiabilitiesSegment liabilities 21,706,581 1,860,581 (8,094,755) 15,472,407Total liabilities 15,472,407

Note 4. Revenue

Disaggregation of revenueThe disaggregation of revenue from contracts with customers is as follows:

Consolidated30 June 2019 30 June 2018

$ $

Major product linesNitrile gloves – VIP Gloves Sdn Bhd 10,837,388 8,512,141Conveyer chain parts – KLE Products Sdn Bhd 854,223 2,879,271

11,691,611 11,391,412

Geographical regionsAll revenue is earned by Malaysian subsidiaries, and from operations in Malaysia.

Note 5. Other income


$ $

Net foreign exchange gain 351,751 606,862Net gain on disposal of property, plant and equipment - 27,938Writeback doubtful debt provisions no longer required - 37,023Other revenue 7,654 9,556

Other income 359,405 681,379

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Note 6. Expenses


$ $

Loss before income tax includes the following specific expenses:

DepreciationPlant and equipment 3,777 -Motor vehicles 2,507 7,243Office equipment 7,136 8,872Leasehold buildings 100,129 88,650

Total depreciation 113,549 104,765

Depreciation included in cost of goods soldPlant and equipment 577,425 531,425

Total depreciation and amortisation 690,974 636,190

Provision for impairmentImpairment of inventories (included in cost of goods sold) 2,115,570 -Impairment of receivables 205,902 1,042,101Impairment of plant and equipment 297,933 -

Total impairment 2,619,405 1,042,101

General and administrative expensesEmployee wages and related costs 351,043 277,730Directors fees 301,241 448,493Provision for expected credit losses 205,902 1,042,101Depreciation 113,549 104,764Auditors fees 187,430 170,313Other administration expenses 289,101 417,329

Total general and administrative expenses 1,448,266 2,460,730

Finance costsInterest and finance charges paid/payable 693,898 715,260

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Note 7. Income tax


$ $

Numerical reconciliation of income tax expense and tax at the statutory rateLoss before income tax expense (4,797,309) (2,323,847)

Tax at the statutory tax rate of 27.5% (1,319,260) (639,058)

Tax effect amounts which are not deductible/(taxable) in calculating taxable income:Non-deductable expenses 77,850 272,431

(1,241,410) (366,627)Non assessable income (54,351) (147,394)Impact of different tax rates 144,839 52,526Temporary differences 746,417 148,557Tax losses not brought to account 404,505 312,938

Income tax expense - -


$ $

Tax losses not recognisedUnused tax losses for which no deferred tax asset has been recognised 4,559,950 2,970,610

Potential tax benefit @ 27.5% 1,253,986 816,918

The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.

Carried forward tax losses have not been recognised because it is presently not considered probable that future taxable profit will be available against which the Company can utilise the benefits therein.


$ $

Provision for income taxProvision for income tax 171,423 166,850

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Note 8. Current assets - cash and cash equivalents


$ $

Cash at bank 54,443 367,327

Reconciliation to cash and cash equivalents at the end of the financial yearThe above figures are reconciled to cash and cash equivalents at the end of the financialyear as shown in the statement of cash flows as follows:

Balances as above 54,443 367,327Bank overdraft (1) (note 15) (1,232,625) (1,059,198)

Balance as per statement of cash flows (1,178,182) (691,871)

Note 9. Current assets - trade and other receivables


$ $

Trade receivables 2,044,641 1,866,310Less: Allowance for expected credit losses (1,403,164) (1,163,624)

641,477 702,686

Receivable from related parties* 116,878 122,138

Other receivables 128,427 207,630

886,782 1,032,454

* Receivable from Keng Lek Engineering Sdn Bhd, a Director-related entity of Wee Min Chen and Kay Wen Chen. An advance was provided to Keng Lek Engineering during the year ended 30 June 2017. The movement in value at 30 June 2019 from the prior period relates to repayment of MYR 40,000 and due to the change in the exchange rate.

Allowance for expected credit lossesThe consolidated entity has recognised a loss of $205,902 (2018 $1,042,101) in profit or loss in respect of the expected credit losses for the year ended 30 June 2019.

The ageing of the receivables and allowance for expected credit losses provided for above are as follows:

Allowance for expectedExpected credit loss rate Carrying amount credit losses

30 June 2019 30 June 2018 30 June 2019 30 June 2018 30 June 2019 30 June 2018Consolidated % % $ $ $ $

Not overdue - - 35,777 361,427 - -0 to 3 months overdue - - 354,779 191,665 - -3 to 6 months overdue - 5.12% 108,649 121,417 - 6,219Over 6 months overdue 90.79% 76.06% 1,545,436 1,521,569 1,403,164 1,157,405

2,044,641 2,196,078 1,403,164 1,163,624

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Note 9. Current assets - trade and other receivables (continued)

Movements in allowance for expected credit losses Consolidated30 June 2019 30 June 2018

$ $

Opening balance 1,163,624 53,712Additional allowance recognised during the period 207,645 1,042,101Foreign currency translation 31,895 67,811

Closing balance 1,403,164 1,163,624

Note 10. Current assets - inventories


$ $

Raw materials 1,224,232 1,228,435Work in progress 550,407 758,839Finished goods 1,256,249 1,726,080Provision for impairment (2,150,537) -

880,351 3,713,354

Note 11. Current assets - financial assets


$ $

Fixed term deposits 307,908 292,988

Refer to note 23 for further information on fair value measurement.

Note 12. Current assets - other


$ $

Prepayments 12,691 20,298Deposits 49,930 50,682

62,621 70,980

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Note 13. Non-current assets - property, plant and equipment


$ $

Plant and equipment - at cost 6,552,859 5,887,039Less: Accumulated depreciation (2,253,426) (1,643,598)Less: Impairment (302,857) -

3,996,576 4,243,441

Motor vehicles - at cost 12,741 12,401Less: Accumulated depreciation (2,760) (207)

9,981 12,194

Office equipment - at cost 118,504 117,993Less: Accumulated depreciation (32,995) (22,593)

85,509 95,400

Leasehold land 5,122,008 4,991,432

Leasehold buildings 2,082,254 2,020,634Less: Accumulated depreciation (510,478) (397,303)

1,571,776 1,623,331

Capital works in progress 4,250,780 3,683,355

15,036,630 14,649,153

ReconciliationsReconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Officeland buildings equipment equipment

MotorVehicles

CapitalWorks

Consolidated $ $ $ $ $ $ $

Balance at 1 July 2017 4,218,433 1,630,387 4,232,746 67,124 8,572 115,792 10,273,054Additions 187,686 50,091 196,761 30,858 12,401 3,581,007 4,058,804Disposals - - (54,123) - (1,726) (25,832) (81,681)Exchange differences 451,295 165,522 399,481 6,290 190 12,388 1,035,166Transfers in/(out) 134,018 (134,018) - - - - -Depreciation expense - (88,650) (531,425) (8,872) (7,243) - (636,190)

Balance at 30 June 2018 4,991,432 1,623,332 4,243,440 95,400 12,194 3,683,355 14,649,153Additions - - 4,627 2,479 - 971,347 978,453Disposals - - (8,384) - - - (8,384)Exchange differences 130,576 48,417 113,383 1,540 293 117,030 411,239Impairment of assets - - (302,857) - - - (302,857)Depreciation expense - (100,129) (581,202) (7,136) (2,507) - (690,974)

Balance at 30 June 2019 5,122,008 1,571,620 3,469,007 92,283 9,980 4,771,732 15,036,630

Valuations of land and buildingsThe basis of the valuation of land and buildings is fair value. The Directors do not believe that there has been a material movement in fair value since the prior reporting period.

Refer to note 23 for further information on fair value measurement.

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Note 14. Current liabilities - trade and other payables


$ $

Trade payables 3,109,473 3,640,162Payable to related parties (1) 121,712 144,941Payable - applications for issued capital - 2,103,587Other payables and accruals 2,142,636 2,673,991

5,373,821 8,562,681

(1) Payables to related parties’ relates to accruals of Directors fees and advisory fees payable to Wee Min Chen.

Refer to note 22 for further information on financial risk management.

Note 15. Current liabilities - financial liabilities


$ $

Bank overdraft (1) 1,232,625 1,059,198Term loans (2) 866,056 1,326,087Convertible notes payable (3) 700,000 1,606,667Trust receipts (4) 534,645 687,910Hire purchase (5) 7,985 60,895

3,341,311 4,740,757

Included within term loan is a $602,592 Term Loan with Hong Leong Bank which has been classified as current due to breaches of the following covenants that are measured annually, based upon the results of the subsidiary entity, KLE Products Sdn Bhd:● minimum revenue of $10 million (MYR30 million) or more, and● minimum net profit before tax of $0.833 million (MYR 2,500,000) or more.

As at the date of this financial report, Hong Leong Bank is reviewing the term loan facilities.


Assets pledged as security(1) The bank overdraft of the Group is secured by the following:● Pledge of fixed deposits of the Group with a licensed bank.● Legal charge over the Group’s leasehold land and building.● Jointly and severally guaranteed by certain Directors of the Group; and● Corporate guarantee from a Group in which certain Directors have an interest.

(2) The term loans of the consolidated entity are secured by the following:● Guarantee by Credit Guarantee Corporation Malaysia Berhad● Legal charge over the Company’s leasehold land and building.● Jointly and severally guaranteed by certain Directors of the Company; and● Assignment of a Single Premium Reducing Term Plan.● Jointly and severally guaranteed by the company and a related company.

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Note 15. Current liabilities - financial liabilities (continued)

(3) The convertible notes of the consolidated entity are unsecured. The coupon rate is 12% per annum and they convert to shares at $0.05 per share at the discretion of the noteholder. Terms for repayment of Convertible Notes principle and interest owing to the two holders have been agreed, with outstanding interest to be paid by 31 December 2019 and principal to be repaid once the company has been adequately recapitalised.

(4) The trust receipt of the Company bears interest at rates ranging from 1.1% to 1.5% (2018: 1.1-1.5%) per annum above the bank’s base lending rate and has maturity period of 150 days (2018: 150 days).

(5) The annual effective interest rates of the hire purchase liabilities range from 4.55% to 14.50% (2018: 4.55% to 14.50%) per annum.

Note 16. Current liabilities - income tax


$ $

Provision for income tax 171,423 166,850

Note 17. Non-current liabilities - financial liabilities


$ $

Term loans (1) 2,132,486 1,989,400Hire purchase (2) 6,333 12,719

2,138,819 2,002,119


(1) Refer to Note 15 Current Financial Liabilities for further information.

(2) Refer to Note 15 Current Financial Liabilities for further information.

Note 18. Equity - issued capital

Consolidated30 June 2019 30 June 2018 30 June 2019 30 June 2018

Shares Shares $ $

Ordinary shares - fully paid 593,221,525 384,312,495 14,108,521 8,483,553Equity received in advance * - - 812,278 -

593,221,525 384,312,495 14,920,799 8,483,553

* Share application proceeds received in advance totalling $812,278 were received from Endless Earnings Sdn Bhd andLeading & Junction Sdn Bhd.

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Note 18. Equity - issued capital (continued)

Movements in ordinary share capital

Details Date Shares Issue price $

Balance 1 July 2017 354,812,495 7,222,087Issue of shares 22 Dec 2017 9,200,000 $0.0500 460,000Issue of shares 26 Feb 2018 10,000,000 $0.0500 500,000Issue of shares 20 Mar 2018 10,300,000 $0.0500 515,000Capital raising costs - $0.0000 (213,534)

Balance 30 June 2018 384,312,495 8,483,553Issue of shares 3 Oct 2018 6,920,414 $0.0289 200,000Issue of shares 25 Oct 2018 3,460,207 $0.0289 100,000Issue of shares 11 Dec 2018 18,990,733 $0.0289 548,833Issue of shares 21 Dec 2018 6,417,625 $0.0289 185,469Issue of shares 17 Jan 2019 7,965,539 $0.0289 230,204Issue of shares - conversion of debt to shares 21 Jan 2019 6,466,198 $0.0289 186,873Issue of shares 19 Feb 2019 121,151,689 $0.0289 3,501,284Issue of shares - conversion of debt to shares 14 Mar 2019 7,956,123 $0.0289 229,932Issue of shares 8 May 2019 29,580,502 $0.0289 854,877Capital raising costs - $0.0000 (412,504)

Balance 30 June 2019 593,221,525 14,108,521

Ordinary sharesOrdinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Share buy-backThere is no current on-market share buy-back.

Capital risk managementThe consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.

Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents.

In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current Company's share price at the time of the investment. The consolidated entity is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.

The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk management decisions. There have been no events of default on the financing arrangements during the financial year.

The capital risk management policy remains unchanged from the 2018 Financial Report.

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VIP Gloves LtdNotes to the financial statements 30 June 2019

Note 19. Equity - options

Options30 June 2019 - Unlisted

Exercise price Outstanding Issued duringyear

Exercised during year

Lapsed duringyear

Outstandingat 30 Jun

2019

28/01/2019 $0.1000 23,500,000 - - (23,500,000) -

Options30 June 2018 - Unlisted

Exercise price Outstanding Issued duringyear

Exercised during year

Lapsed duringyear

Outstandingat 30 Jun

2018

28/01/2019 $0.1000 23,500,000 - - - 23,500,000

Note 20. Equity - reserves


$ $

Foreign currency reserve (465,472) (375,047)

Note 21. Equity - dividends

There were no dividends paid, recommended or declared during the current or previous financial year.

Note 22. Financial risk management

Financial risk management objectivesThe consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the consolidated entity. The consolidated entity uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks and ageing analysis for credit risk.

Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors ('the Board'). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the consolidated entity's operating units. Finance reports to the Board on a monthly basis.

The consolidated entity holds the following financial instruments at the end of the financial year.

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Expiry date $ at 1 Jul 2018

Expiry date $ at 1 Jul 2017

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Note 22. Financial risk management (continued)


$ $

Financial AssetsCash and cash equivalents 54,443 367,327Other financial assets 307,908 292,988Trade and other receivables 886,782 1,032,454Total financial assets 1,249,133 1,692,769

Financial LiabilitiesTrade and other payables 5,373,821 8,562,681Borrowings – current * 3,341,312 4,740,757Borrowings – non-current * 2,138,818 2,002,119Total financial liabilities 10,853,951 15,305,557

Market risk

Foreign currency riskThe consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations.

Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash flow forecasting.

The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the reporting date were as follows:

Assets Liabilities30 June 2019 30 June 2018 30 June 2019 30 June 2018


Malaysian Ringgit 17,233,943 20,372,614 (21,993,694) (21,098,005)

The consolidated entity had net liabilities denominated in foreign currencies of (MYR 4,759,751) as at 30 June 2019 (2018: net liabilities of MYR 725,391).

Based on this exposure, had the Australian dollar weakened by 5% / strengthened by 5% (2018: weakened by 5% / strengthened by 5%) against these foreign currencies with all other variables held constant, the consolidated entity's loss before tax for the year would have been $226,655 lower / $226,655 higher (2018: $34,542 lower / $34,542 higher) and equity would have been $226,655 lower / $226,655 higher (2018: $34,542 lower / $34,542 higher).

The percentage change is the expected overall volatility of the significant currencies, which is based on management’s assessment of reasonable possible fluctuations taking into consideration movements over the last 6 months each year and the spot rate at each reporting date. The actual realised foreign exchange gain for the year ended 30 June 2019 was $374,567 (2018: loss $22,242).

Price riskThe consolidated entity is not exposed to any significant price risk.

Interest rate riskExposure to interest rate risk arises on financial assets recognised at the end of the financial year whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate instruments. The consolidated entity’s main interest rate risk arises from borrowings. Borrowings issued at variable rates expose the consolidated entity to interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The policy is that the Group manages itsinterest rate risk exposure by reviewing its debts portfolio to ensure favourable rates are obtained. As at the reporting date,the consolidated entity had the following borrowings:

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As at the reporting date, the consolidated entity had the following variable rate borrowings:

30 June 2019 30 June 2018Weightedaverage

interest rate Balance

Weightedaverage

interest rate BalanceConsolidated % $ % $

Trust receipts 1.40% 534,645 1.40% 687,910Hire Purchase 3.10% 14,318 3.10% 73,614Overdraft * - 1,232,625 - 1,059,197Term Loans 6.30% 2,998,542 6.80% 3,315,488Convertible Notes 12.00% 700,000 12.00% 1,606,667

Net exposure to cash flow interest rate risk 5,480,130 6,742,876

* Weighted average interest rate for overdraft was BLR + 1.25% - 1.55% for both current and prior years.

An analysis by remaining contractual maturities in shown in 'liquidity and interest rate risk management' below.

Credit riskCredit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to theconsolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information, confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The consolidated entity does not hold any collateral.

Liquidity riskVigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.

The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.

Financing arrangementsUnused borrowing facilities at the reporting date:


$ $

Bank overdraft - 107,078Bank loans - 6,765Combined trade line 330,009 1,658,170Forward exchange contract - 1,675,772

330,009 3,447,785

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.

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Remaining contractual maturitiesThe following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.

Weightedaverage

interest rate 1 year or lessBetween 1 and 2 years

Between 2and 5 years Over 5 years

Remainingcontractualmaturities

Consolidated - 30 June 2019 % $ $ $ $ $

Non-derivativesNon-interest bearingTrade & other payables - 5,373,825 - - - 5,373,825

Interest-bearing - variableBank overdraft * - 1,232,625 - - - 1,232,625Trust receipts 1.40% 534,645 - - - 534,645

Interest-bearing - fixed rateConvertible notes payable 12.00% 700,000 - - - 700,000Hire purchase 3.10% 7,985 6,333 - - 14,318Borrowings 6.30% 627,326 571,589 1,180,944 1,512,856 3,892,715Total non-derivatives 8,476,406 577,922 1,180,944 1,512,856 11,748,128

* Weighted average interest rate for overdraft was BLR + 1.25% - 1.55% for both current and prior years.

Weightedaverage

interest rate 1 year or lessBetween 1 and 2 years

Between 2and 5 years Over 5 years

Remainingcontractualmaturities

Consolidated - 30 June 2018 % $ $ $ $ $

Non-derivativesNon-interest bearingTrade & other payables - 8,562,681 - - - 8,562,681

Interest-bearing - variableBank overdraft - 1,059,198 - - - 1,059,198Trust receipts 1.40% 687,910 - - - 687,910

Interest-bearing - fixed rateConvertible notes payable 12.00% 1,606,667 - - - 1,606,667Hire purchase 3.10% 60,895 12,719 - - 73,614Borrowings 6.80% 628,828 609,290 1,523,576 1,740,104 4,501,798Total non-derivatives 12,606,179 622,009 1,523,576 1,740,104 16,491,868

The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.

Fair value of financial instrumentsUnless otherwise stated, the carrying amounts of financial instruments reflect their fair value.

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Note 23. Fair value measurement

Fair value hierarchyThe following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at themeasurement dateLevel 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectlyLevel 3: Unobservable inputs for the asset or liability

Level 1 Level 2 Level 3 TotalConsolidated - 30 June 2019 $ $ $ $

LiabilitiesConvertible notes payable - - 700,000 700,000Total liabilities - - 700,000 700,000

Level 1 Level 2 Level 3 TotalConsolidated - 30 June 2018 $ $ $ $

LiabilitiesConvertible notes payable - - 1,606,667 1,606,667Total liabilities - - 1,606,667 1,606,667

There were no transfers between levels during the financial year.

The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature.

The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial liabilities.

Note 24. Key management personnel disclosures

CompensationThe aggregate compensation made to Directors and other members of key management personnel of the consolidated entity is set out below:


$ $

Short-term employee benefits 641,211 686,119Post-employment benefits 29,682 27,895

670,893 714,014

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Note 25. Remuneration of auditors

During the financial year the following fees were paid or payable for services provided by , the auditor of the Company, and its network firms:


$ $

Audit services – RSM AustraliaAudit or review of the financial statements 75,000 80,650Other services – RSM AustraliaIndependent Experts Report 26,170 -

101,170 80,650

Audit services - network firmsAudit or review of the financial statements 66,055 55,000

Note 26. Contingent liabilities

The Directors are not aware of any potential liabilities or claims against the Company as at the date of this Report.

Note 27. Commitments

The consolidated entity has no operating lease commitments at 30 June 2019 (2018: nil). The consolidated entity has completed the construction of two glove manufacturing lines. Outstanding capital commitments at 30 June 2019 are $5,021,164 (2018: $4,549,833).


$ $

Lease commitments - financeCommitted at the reporting date and recognised as liabilities, payable:Within one year 7,985 60,895One to five years 6,333 12,719

Total commitment 14,318 73,614Less: Future finance charges - -

Net commitment recognised as liabilities 14,318 73,614

Note 28. Related party transactions

Parent entityVIP Gloves Ltd is the parent entity.

SubsidiariesInterests in subsidiaries are set out in note 30.

Key management personnelDisclosures relating to key management personnel are set out in note 24 and the remuneration report included in the Directors' report.

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Note 28. Related party transactions (continued)

Transactions with related partiesThe following transactions occurred with related parties:


$ $

Payment for goods and services:Transactions with Keng Lek Engineering (Director-related entity of Wee Min Chen and Kay Wen Chen) for rental of motor vehicles.

Payment for other expenses:Transactions with Sanston Securities Australia Pty Ltd (Director related entity of Frank Licciardello) in respect of capital raising.

7,914

-

22,117

77,042Transactions with Kah Ling Chang in her capacity as a lawyer for the Group. - 17,000Repayment of convertible notes to Kah Ling Chang 500,000 -Cash received as loan from Chin Kar Yang 532,770 -

Receivable from and payable to related partiesThe following balances are outstanding at the reporting date in relation to transactions with related parties:


$ $

Current receivables:Receivables from Keng Lek Engineering (director-related entity of Wee Min Chen) 111,713 122,138Receivables from Wee Min Chen 5,165 -

Current payables:Accrued advisor fees to Wee Min Chen 68,868 95,519Accrued Directors fees 52,844 49,422Amounts payable to Alpha teamwork for unpaid and outstanding director fees payable to AiLing Chong. - 12,000Convertible notes held by Kah Ling Chang - 500,000Cash received as loan from Chin Kar Yang 532,770 -

Loans to/from related partiesThere were no loans to or from related parties at the current and previous reporting date.

Terms and conditionsAll transactions were made on normal commercial terms and conditions and at market rates.

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Note 29. Parent entity information

Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income

Parent30 June 2019 30 June 2018

$ $

Loss after income tax (6,128,276) (852,169)

Total comprehensive income (6,128,276) (852,169)

Statement of financial position

Parent30 June 2019 30 June 2018

$ $

Total current assets (5,208) 145,066

Total assets 7,203,111 7,948,649

Total current liabilities 999,750 1,860,581

Total liabilities 999,750 1,860,581

EquityIssued capital 61,430,784 55,187,215Accumulated losses (55,227,423) (49,099,147)

Total equity 6,203,361 6,088,068

Guarantees entered into by the parent entity in relation to the debts of its subsidiariesThe parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2018 and 30 June 2019.

Contingent liabilitiesThe parent entity had no contingent liabilities as at 30 June 2018 and 30 June 2019.

Capital commitments - Property, plant and equipmentThe parent entity had no capital commitments for property, plant and equipment as at 30 June 2018 and 30 June 2019.

Significant accounting policiesThe accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except for the following:● Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.● Investments in associates are accounted for at cost, less any impairment, in the parent entity.

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Note 30. Interests in subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 1:

Ownership interestPrincipal place of business / 30 June 2019 30 June 2018

Name Country of incorporation % %

KLE Products Sdn Bhd Malaysia 100.00% 100.00%VIP Glove Sdn Bhd Malaysia 100.00% 100.00%

Note 31. Events after the reporting period

The consolidated entity has entered into an agreement with Silver Max Asia Pacific (Labuan) Limited to issue share capital to the value of $2,000,000. This is subject to approval at the AGM in November 2019. $750,000 has already been received under this agreement.

The Directors agreed to cease the Company’s loss-making conveyer chain parts manufacturing operations undertaken by its subsidiary KLE Products.

These actions reduce losses and raise capital to complete the construction and commissioning of additional nitrile glove manufacturing lines and provide working capital to the Company.

No other matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Note 32. Reconciliation of loss after income tax to net cash used in operating activities


$ $

Loss after income tax expense for the year (4,797,309) (2,323,847)

Adjustments for:Depreciation and amortisation 690,974 636,188Impairment of property, plant and equipment 297,933 -Net loss/(gain) on disposal of property, plant and equipment 10,078 (9,474)Foreign exchange differences (523,714) (494,783)Accrued interest expense - 146,255Doubtful debts expense 205,902 1,042,101Impairment of inventory 2,115,570 -

Change in operating assets and liabilities:Decrease in trade and other receivables 145,672 765,464Decrease/(increase) in inventories 2,833,003 (52,712)Decrease in other operating assets 8,359 2,604Increase/(decrease) in trade and other payables (2,413,966) 214,407Increase/(decrease) in provision for income tax 4,573 (190,113)

Net cash used in operating activities (1,422,925) (263,910)

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Note 33. Earnings per share


$ $

Loss after income tax (4,797,309) (2,323,847)

Cents Cents

Basic loss per share (1.04) (0.63)Diluted loss per share (1.04) (0.63)

Number Number

Weighted average number of ordinary shares used in calculating basic earnings per share 462,101,140 368,475,394

Weighted average number of ordinary shares used in calculating diluted earnings per share 462,101,140 368,475,394

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VIP Gloves LtdDirectors' declaration30 June 2019

In the Directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, theCorporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes comply with International Financial Reporting Standards as issued by theInternational Accounting Standards Board as described in note 1 to the financial statements;

• the attached financial statements and notes give a true and fair view of the consolidated entity's financial position asat 30 June 2019 and of its performance for the financial year ended on that date; and

• there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become dueand payable,

The Directors have been given the declarations required by section 295A of the Corporations Act 2001.

Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the Directors

25 October 2019

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INDEPENDENT AUDITOR’S REPORTTo the Members of VIP Gloves Limited

OpinionWe have audited the financial report of VIP Gloves Limited (the Company) and its subsidiaries (the consolidated entity), which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion the accompanying financial report of the consolidated entity is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the consolidated entity 's financial position as at 30 June 2019 and of its financialperformance for the year then ended; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for OpinionWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independentof the consolidated entity in accordance with the auditor independence requirements of the Corporations Act 2001 and theethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going ConcernWe draw attention to Note 1 in the financial report, which indicates that the consolidated entity incurred a net loss of $4,797,309 and recorded net cash outflows from operations of $1,422,925 for the year ended 30 June 2019 and, as at that date, the consolidated entity‘s current liabilities exceeded its current assets by $6,694,450. As stated in Note 1, these events or conditions, along with other matters set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the consolidated entity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key Audit MattersKey audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financialreport of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the key audit matters to be communicated in our report.

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Key Audit Matters (Continued.)

Key Audit Matter How our audit addressed this matterTrade receivables recoverabilityRefer to Note 9 in the financial statementsNote 9 of the financial statements shows net trade receivables of $641,477 after allowance for expected credit losses.

The recoverability of trade receivables is considered a key audit matter, due to the materiality of overdue balances.

There is significant management judgment in determiningthe recoverability of receivables, and in estimating theexpected credit losses.

Inventories net realisable valueRefer to Note 10 in the financial statementsAs disclosed in Note 10, an impairment of $2,150,537 was recognised at 30 June 2019. This provision was in relation to the impairment of the subsidiary’s conveyor chain parts.

Inventory is valued at the lower of cost or net realisable value. The provision for impairment involved management judgment and estimate as to the net realisable value of the inventories at reporting date.

Other Information

Our audit procedures in relation to assessing the recoverability of trade receivables included:

• Identifying and critically assessing long overdue balances,including those which have been and have not been provided against;

• Reviewing and satisfying ourselves with the company’sassessment of the recoverability of debtors and its allowance for expected credit losses. This included consideration of the company’s terms of trade with its customers, receipts subsequent to year-end and specific repayment experiences with individual debtors; and

• Assessing the appropriateness of the disclosures relating tocredit risk and to receivables past due.

Our audit procedures in relation to assessing the net realisable value of inventories at reporting date included:

• Evaluating management’s assumptions and estimates inrelation to assessing the net realisable value of inventories at reporting date; and

• Testing the accuracy and completeness of management’scalculation for the provision of impairment recognised at 30 June 2019.

The directors are responsible for the other information. The other information comprises the information included in the consolidated entity’s annual report for the year ended 30 June 2019, but does not include the financial report and the auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial ReportThe directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

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Responsibilities of the Directors for the Financial Report (Continued.)In preparing the financial report, the directors are responsible for assessing the ability of the consolidated entity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the consolidated entity or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial ReportOur objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf.This description forms part of our auditor's report.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 6 to 12 of the directors' report for the year ended 30 June 2019.

In our opinion, the Remuneration Report of VIP Gloves Limited, for the year ended 30 June 2019, complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

RSM AUSTRALIA PARTNERS

J S CROALLPartner

Dated: 25 October 2019Melbourne, Victoria

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http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf

VIP Gloves LtdShareholder information30 June 2019

The shareholder information set out below was applicable as at 30 September 2019.

Distribution of equitable securitiesAnalysis of number of equitable security holders by size of holding:

Number of holders

Number of optionsof holders overof ordinary ordinary

shares shares

1 to 1,000 34 5,9321,001 to 5,000 15 47,6665,001 to 10,000 10 84,55710,001 to 100,000 259 10,995,386100,001 and over 155 582,087,984

473 593,221,525

Holding less than a marketable parcel 30 3,735

Twenty largest quoted equity security holdersThe names of the twenty largest security holders of quoted equity securities are listed below:

Ordinary shares% of total

sharesNumber held issued

LEADING AND JUNCTION SDN BHD 121,151,689 20.42WEE MIN CHEN 46,150,948 7.78EI LING CHONG 36,937,846 6.23ENDLESS EARNINGS SDN BHD 29,580,502 4.99LEE KEONG WONG 24,971,165 4.21BNP PARIBAS NOMS PTY LTD {UOB KAY HIAN PRIV LTD DRP} 17,348,601 2.92CHOONG CHOY LEE 14,383,164 2.42MR LIGE WANG 13,327,622 2.25HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 12,808,057 2.16CITICORP NOMINEES PTY LIMITED 11,214,130 1.89MR HOCK GUAN NG 10,986,342 1.85MR TING LIAN LOO 10,913,494 1.84HEE KIN PANG 10,666,667 1.80RHB SECURITIES SINGAPORE PTE LTD {CLIENTS A/C} 10,477,145 1.77YAT YIN TAI 10,000,000 1.69MR KOK LEONG ER 10,000,000 1.69MS MAY THIAN 9,887,123 1.67SICHUAN DEYANG XINZE BEARING CO LTD 9,193,369 1.55LEE KEONG WONG 9,177,950 1.55CHAN WEI YET 6,300,000 1.06

425,475,814 71.74

There are no unquoted equity securities.

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VIP Gloves LtdShareholder information30 June 2019

Substantial holdersSubstantial holders in the Company are set out below:

Ordinary shares% of total

sharesNumber held issued

Wee Min Chen 55,550,948 9.36Ei Ling Chong 38,992,371 6.57Leading and Junction Sdn Bhd 121,151,689 20.42

Voting rightsThe voting rights attached to ordinary shares are set out below:

Ordinary sharesOn a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll eachshare shall have one vote.

There are no other classes of equity securities.

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for personal use only - asx · name: dr kai fatt (joe) w ong title: non-executive chairman,...

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